Adobe Stock Drops 3.10% Amid Technical Bearish Signals

Adobe (ADBE) declined 3.10% in the latest session, closing at $345.63 amid elevated trading volume of 4.23 million shares. This movement concludes a recent phase of volatility and sets the context for our technical assessment across multiple indicators.
Candlestick Theory
Recent sessions show indecision patterns near the $353–$358 resistance zone. The 2025-08-29 session formed a small bullish candle after testing $352.45 support, but subsequent bearish engulfing patterns on 2025-09-02 and 2025-08-26 confirm selling pressure. Key support now rests at $341.28 (recent low), while resistance remains at the $356–$363 congestion area established over late August. A decisive close below $341 would signal bearish continuation.
Moving Average Theory
The 50-day SMA (currently near $366) crossed below the 100-day SMA ($375) in early August, confirming a mid-term bearish bias. With price trading well below both the 200-day SMA ($408) and shorter-term averages, the primary trend remains downward. Recent bounces have been contained by the descending 50-day SMA, reinforcing its role as dynamic resistance.
MACD & KDJ Indicators
The MACD histogram remains in negative territory, though its slope has flattened near the zero line – suggesting weakening downside momentum. Meanwhile, the KDJ oscillator shows mixed signals: The %K line (24) and %D line (29) are approaching oversold territory but haven't yet triggered bullish crossovers. This divergence implies potential for short-term consolidation, though the bearish MACD stance advises caution.
Bollinger Bands
Bollinger Band width expanded significantly during August's decline, reflecting increasing volatility. Price currently tests the lower band near $341, which historically provided temporary support. The bands' ongoing contraction from late-August highs suggests declining volatility, often preceding directional breaks. A sustained break below the lower band would signal bearish acceleration.
Volume-Price Relationship
The 3.10% decline on 2025-09-02 occurred on 85% above-average volume (4.23M vs 30-day avg 3.28M), validating bearish conviction. Notably, distribution patterns emerged during August rallies – including the 2025-08-13 3.73% advance on 4.38M shares – failed to sustain momentum. This volume profile indicates limited buying conviction at higher levels.
Relative Strength Index
The 14-day RSI reading of 38.6 sits near oversold territory but hasn't breached the 30 threshold. While this shows bearish momentum dominance, the lack of extreme oversold conditions suggests limited immediate rebound potential. Historical RSI behavior indicates that sustainable recoveries typically require multiple tests of the 30–35 zone.
Fibonacci Retracement
Using the major swing high of $586.55 (2024-09-12) and swing low of $332.65 (2025-08-07), key retracement levels emerge: The 23.6% level ($392) contained July rallies, while the 38.2% level ($431) capped June attempts. Current price trades below all Fibonacci levels, with the next meaningful support appearing at the 100% projection near $326. The 50% retracement at $460 establishes a distant recovery target.
Confluence exists near $340–$342, where Bollinger Band support, the recent low, and psychological support align – making this a critical defensive zone for bulls. However, bearish convergence dominates with volume confirmation, moving average sequencing, and lack of RSI extremes. Traders should monitor $341 for breakdown confirmation or consolidation signals.